Demand for Richmond apartments remains strong

Demand for Richmond area apartments remained strong over the past six months, with an occupancy rate of 93.4 percent. That means the vacancy rate is 6.6 percent, nearly the same as a 6.2 percent vacancy rate in July 2012.

Growth continues primarily in Richmond’s Central Business submarket in and around downtown. According to Real Data, there is approximately 2,700 units under-construction, of which 1,500 are in the Central submarket. The average monthly rental rate is $907.

Occupancy rates are expected to decline modestly beginning in 2014 as new supply comes on-line in the next 12 to 18 months. However, Real Data says the area should see healthy rent growth through 2014.

In comparison to Richmond, vacancy rates in other markets are:
6 percent in Norfolk/Virginia Beach; 5.2 percent in Roanoke, 6.2 percent in Charlotte, N.C.; and 8.3 percent in Charleston, S.C.